Category: Telecom

  • TRAI releases recommendations for privacy & protection of consumer data

    TRAI releases recommendations for privacy & protection of consumer data

    MUMBAI: The Telecom Regulatory Authority of India (TRAI) has come out with its recommendations on ‘Privacy, security and ownership of data in the telecom sector’.

    It says that since digital ecosystems that collect user data are just custodians and don’t have privacy rights over it, TRAI recommends that a study should be undertaken to formulate the standards for annonymisation/ de-identification of personal data generated and collected in the digital ecosystem.

    All entities in the digital ecosystem, which control or process the data, should be restrained from using meta-data to identify individual users. The existing framework for protection of the personal information/ data of telecom consumers is not sufficient. Therefore, to protect telecom consumers against the misuse of their personal data by the broad range of data controllers and processors in the digital ecosystem, all entities in the digital ecosystem, which control or process their personal data should be brought under a data protection framework.

    Till a government notified law is passed, the existing rules/ licence conditions applicable to TSPs for protection of users’ privacy should be made applicable to all the entities in the digital ecosystem.

    Consumers should be given the right to choice, notice, consent, data portability, and right to be forgotten. The right to data portability and right to be forgotten being restricted rights should be subjected to applicable restrictions.

    Multilingual, easy to understand, unbiased, short templates of agreements/ terms and conditions should be made mandatory for all the entities in the digital eco-system for the benefit of consumers. Consumer awareness programs be undertaken to spread awareness about data protection and privacy issues so that the users can take well informed decisions about their personal data.

    Data controllers should be prohibited from using ‘pre-ticked boxes’ to gain users’ consent. Clauses for data collection and purpose limitation should be incorporated in the agreements. Devices should disclose the terms and conditions of use in advance, before sale of the device. It should be made mandatory for the devices to incorporate provisions so that user can delete pre-installed applications if he/she so decides. Also, the user should be able to download the certified applications at his own will and the devices should in no manner restrict such actions by the users.

    To ensure the privacy of users, National Policy for encryption of personal data, generated and collected in the digital ecosystem, should be notified by the government at the earliest. For ensuring the security of the personal data and privacy of telecommunication consumers, personal data of telecommunication consumers should be encrypted during the motion as well as during the storage in the digital ecosystem. Decryption should be permitted on a need basis by authorised entities in accordance to consent of the consumer or as per requirement of the law.

    A common platform should be created for sharing of information relating to data security breach incidences by all entities in the digital ecosystem including telecom service providers. It should be made mandatory for all entities in the digital ecosystem including all such service providers to be a part of this platform. Data security breaches may take place in-spite of adoption of best practices/ necessary measures taken by the data controllers and processors. Sharing of information concerning to data security breaches should be encouraged and incentivised to prevent/ mitigate such occurrences in future.

  • Powered by Jio, RIL touches $100 bn market cap

    Powered by Jio, RIL touches $100 bn market cap

    MUMBAI: Reliance Industries becomes the second company to hit $100 billion market capitalisation after TCS in 2018. Previously, in 2008 too, the company has hit the $100 billion mark when the rupee was around 40 to the dollar, according to Moneycontrol.com.

    RIL has seen a hike in the share prices of oil-to-telecom for the fifth consecutive day on Thursday. The stock closed 4.42 per cent higher at Rs 1,082.20 on the BSE and taking total five-day gains to over 12 per cent. This could be due to an aggressive plan announced in the AGM and ahead of its June quarter earnings.

    While having a buy call on the stock with a target price of Rs 1,340 per share (which implies 29 per cent potential upside), global brokerage house Goldman Sachs said it expects Q1 EBITDA to grow 45 per cent YoY (up two per cent QoQ).

    The company’s market capitalisation stood at Rs 6,85,726.98 crore at its record price level and TCS at Rs 7,45,612.17 crore (One US dollar = Rs 68.64).

    SP Tulsian of sptulsian.com expects that the telecom business will be the biggest contributor to the share price of Reliance Industries over the next 18 months. Hence, he is banking on the growth of Jio and Reliance Retail.

    Speaking about positive factors that could impact the stock, he said, “There is an increase in margins of the petrochemicals and refinery segments. The monetisation plan for Reliance Jio and Reliance Retail are likely in the next 30 months.”

    KR Choksey Investment Managers MD Deven Choksey was quoted stating that, the visibility is clearly emerging for Jio as the average revenue per user of Jio will jump from Rs 150 to higher levels.

    “Through the fiber-to-home proposition, if Jio customer base reaches 40 crore from the current 20 crore, it would mean an addition of Rs two lakh crore to the total revenue and 50 per cent of that may be EBITDA which works out to Rs one lakh crore. This could happen in two or three years. This is why the market is gung-ho about Jio,” said Choksey, according to Moneycontrol.com.

    Reliance consumer businesses, including Jio and retail, up from two per cent to 13 per cent of consolidated EBITDA.

  • US DOJ to appeal AT&T-Time Warner deal

    US DOJ to appeal AT&T-Time Warner deal

    MUMBAI: The US Department of Justice (DOJ) will appeal the AT&T-Time Warner merger approval which was cleared last month by a lower court. Following the announcement, AT&T’s share fell down more than one per cent in after-hours trading .

    Last month, a federal judge ruled approved the $85.4 billion deal as legal without any imposed condition. The DOJ maintained that the deal would make the pay TV market less competitive and less innovative as well. It also said that it would lead to higher prices for consumers.

    “The court’s decision could hardly have been more thorough, fact-based and well-reasoned. While the losing party in litigation always has the right to appeal if it wishes, we are surprised that the DOJ has chosen to do so under these circumstances. We are ready to defend the court’s decision at the DC Circuit Court of Appeals,” AT&T general counsel David McAtee said.

    Other than AT&T, the ruling was also a green light for similar deals on the way. The company has already started moving ahead with plans and holding discussions for what to do with properties like HBO.

  • Mukesh Ambani pips Jack Ma to be Asia’s richest

    Mukesh Ambani pips Jack Ma to be Asia’s richest

    MUMBAI: Indian business tycoon Mukesh Ambani overtook Alibaba group founder Jack Ma on Friday to become richest person in Asia. As Reliance Industry Ltd (RIL) share rose 1.6 per cent, the total wealth of Ambani hit $44.3 billion.

    Chinese e-commerce giant Ma’s wealth stood at $44 billion at close of trade on Thursday in the US, where the company is listed.

    This year Ambani has added another $4 billion to his existing emperor. RIL has reaped huge benefit from its telecom venture Jio along with doubling petrochemicals capacity too. Moreover, he unveiled plans to leverage his 215 million telecom subscribers to expand his e-commerce offerings earlier this month.

    He said Reliance saw its “biggest growth opportunity in creating a hybrid, online-to-offline new commerce platform,” involving the group’s retail and telecom business.

    “We need to broaden our horizon of expectation with Reliance,” a Mumbai-based analyst at Antique Stock Broking Nitin Tiwari said. “They are in for something really transformational,” he added.

    On the other hand, Alibaba Goup’s Ma has reportedly lost $1.4 billion in 2018.

  • NDCP 2018, net neutrality rules cleared by Telecom Commission

    NDCP 2018, net neutrality rules cleared by Telecom Commission

    NEW DELHI: India’s Telecom Commission, the second highest decision-making body regarding telecom policies, yesterday late evening approved the National Digital Communication Policy 2018 and also net neutrality rules, which bar service providers from discriminating against internet content and services by blocking, throttling or granting them higher speed access.

    Some mission critical applications or services like remote surgery and autonomous cars will, however, be kept out of the purview of net neutrality framework.

    “The Telecom Commission approved net neutrality as recommended by TRAI…some critical services will be kept out of its purview,” Telecom Commission Chairman and Secretary Department of Telecoms Aruna Sundararajan told reporters here, according to a Press Trust of India report.

    The Telecom Regulatory Authority of India (TRAI) had recommended restrictions on service providers from entering into agreements which lead to discriminatory treatment of content on the internet. It had also favoured tweaking of licensing norms of players to ensure “explicit restrictions” on discrimination in internet access, based on content.

    The Department of Telecom will set-up a multi-stakeholder body for monitoring and enforcement of net neutrality comprising government representatives, internet of things providers, telecom operators, civil society members and consumer organisations. DoT will seek recommendations from TRAI on traffic management for critical services.

    The Commission also approved the new telecom policy — rechristened National Digital Communications Policy (NDCP) 2018 — for seeking approval of the Union Cabinet, Sundararajan was quoted by the PTI report as saying.

    “Everybody in the meeting said that digital infrastructure is even more important than physical infrastructure for India… CEO of Niti Ayog [Amitabh Kant] said that for…districts, we must ensure digital infrastructure is provided at the earliest. Therefore, India must have ease of doing business and enabling policy environment,” Sundararajan said.

    The NDCP, which looks at having more synergies amongst various government organisations and ministries, aims to attract $100 billion investments, 400,0000 new jobs, 50 megabits per second broadband access to every citizen in the digital communications sector by 2022 with the help of reforms.

    A government official, who was part of the meeting, was quoted by PTI as saying that the Telecom Commission has approved installation of around 12.5 lakh Wi-Fi hotspots in all gram panchayats (village administrations) with viability gap funding of around Rs 60,000 million by December 2018.

    Under the Wi-Fi project all police stations, post offices, primary health centres, schools will be connected with Wi-Fi by December 2018 and there will be a couple of  additional hotspots that will be available for round the clock public access.

    The PTI report added that the commission has also approved avoidance of double tax on virtual network operators (VNOs) who provide retail services of telecom operators.

    According to the proposal approved, VNOs will be required to pay levies based on their adjusted gross revenue earned from any value addition that they will be do over the top of service they will buy from telecom operators for selling it to end consumers.

    Earlier, telecom minister Manoj Sinha had said that his department looks to get approval of the Cabinet for NDCP 2018 by July-end.

  • DoT gives conditional green signal to the Vodafone Idea merger

    DoT gives conditional green signal to the Vodafone Idea merger

    MUMBAI: The Department of Telecommunications (DoT) has conditionally approved the merger of Vodafone India with Idea Cellular, the largest M&A deal in the sector, which will displace Bharti Airtel from the top spot after over 15 years. 

    The merger is expected to give a breather to both the debt-ridden firms, from cut-throat competition in the market where margins have hit rock bottom with free voice calls.

    “DoT has cleared the Vodafone-Idea merger today. They will have to meet conditions for final approval,” a source told the Press Trust of India, as per a report. The department has asked Idea Cellular to pay Rs 3926 crore in cash for Vodafone spectrum and furnish a bank guarantee of Rs 3342 crore, the source added.

    DoT’s conditions have been fortified after two rounds of legal opinion. The merger will result in a new entity, Vodafone Idea Ltd, which is expected to be better placed to take on competition from Reliance Jio Infocomm and Bharti Airtel. On their own, Idea and Vodafone have struggled to take on Jio and Airtel, widening their losses and losing revenue and subscriber market share. 

    Together, Vodafone Idea Ltd will have 37.5 per cent revenue market share and 39 per cent customer market share, or about 440 million subscribers, making it a stronger entity.

    The Aditya Birla Group has the right to acquire up to a 9.5 per cent additional stake from Vodafone under an agreed mechanism with a view to equalising the shareholdings over time. Birla is proposed to be the non-executive chairman of the merged entity and Balesh Sharma as the new CEO. Idea’s chief financial officer Akshaya Moondra will head the financial operations of the new entity as its CFO. Ambrish Jain, currently the deputy MD at Idea Cellular, is set to become the new chief operating officer.

    Vodafone will own 45.1 stakes in the combined entity, while Kumar Mangalam Birla-led Aditya Birla Group would have 26 per cent and Idea shareholders 28.9 per cent.

    Vodafone Idea Ltd will be capable of building substantial mobile data capacity, utilising the largest broadband spectrum portfolio with 34 blocks of 3G spectrum and 129 blocks 4G carriers across the country.

    Idea and Vodafone are separately paying rental for 6,300 mobile sites which will be synced for the merged entity in two years.

  • CCI approves merger of Bharti Infratel, Indus Towers

    CCI approves merger of Bharti Infratel, Indus Towers

    MUMBAI: The Competition Commission of India (CCI) has finally approved the proposed merger of Bharti Infratel and Indus Towers, two large infrastructure providers. The merger will create a $14.6 billion company that will be among the largest mobile tower entities worldwide with 1.63 lakh towers.

    The Securities and Exchange Board of India (Sebi), National Company Law Tribunal (NCLT) and Department of Telecommunications also need to give the green signal for the merger.

    “We are pleased to inform you that approval of CCI has been received for the proposed merger of Bharti Infratel Limited and Indus Towers Ltd,” said the tower arm of India’s largest telco Bharti Airtel in a regulatory filing to the exchanges as quoted by The Hindu.

    Another stakeholder in Indus Towers is Vodafone and will be issued with 783.1 million new shares in the combined company, in exchange for its 42 per cent shareholding in Indus Towers. The transaction values Vodafone’s shareholding at Rs 284 billion ($4.3 billion).

    A report by Medianama stated that the providence can choose to either receive cash or new shares in exchange for 3.35 per cent stake. The remainder from the total 4.85 per cent shareholding will be exchanged for shares. Bharti Airtel’s shareholding will be diluted from 53.5 per cent in Bharti Infratel today to 37.2 per cent in the combined company.

    Bharti Airtel and Vodafone will jointly control the combined company. The merger is expected to close before the end of the financial year 2018-2019. 

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  • In major Jio push, RIL to acquire Radisys for $74 mn

    In major Jio push, RIL to acquire Radisys for $74 mn

    MUMBAI: India’s largest private sector company Reliance Industries Ltd (RIL) has entered into an agreement with Radisys Corporation, US-based open telecom platform solutions provider, to acquire the latter. The deal involves a valuation of roughly $ 74 million or Rs 510 crore.

    According to a PTI report, Radisys, a NASDAQ listed company will be delisted post acquisition. RIL will acquire the US-based company for $1.72 per share in cash. 

    Radisys has nearly 600 employees with an engineering team based out of Bangalore, India, and sales and support offices globally, a press release from the company said.
    RIL hopes this deal will accelerate Jio’s global innovation and technology leadership in the areas of 5G, IoT and open source architecture adoption. Since the launch of its launch in 2016, RIL’s telecom venture Jio has been acquiring customers ata rapid pace.

    “Reliance and Jio have been disrupting legacy business models and establishing new global benchmarks. Radisys’ top-class management and engineering team offer Reliance rapid innovation and solution development expertise globally, which complements our work towards software-centric disaggregated networks and platforms, enhancing the value to customers across consumer and enterprise segments,” Reliance Jio director Akash Ambani said.

    Radisys CEO Brian Bronson said, “The backing and support of India-based global conglomerate Reliance, will accelerate our strategy and the scale required by our customers to further deploy our full suite of products and services. The Radisys team will continue to work independently on driving its future growth, innovation and expansion. The addition of Reliance’s visionary leadership and strong market position will enhance Radisys’ ability to develop and integrate large-scale, disruptive, open-centric end-to-end solutions.”

    The deal is subject to approvals from regulators and Radisys’ shareholders, and is expected to be officially sealed in the fourth quarter of 2018. RIL will finance the transaction through its own internal accruals.

    Also Read:

    Now, Reliance Jio coud set off broadband turf war with Airtel

    Reliance Jio ready to disrupt wired broadband: Matthew Oomen

  • Now, Reliance Jio coud set off broadband turf war with Airtel

    Now, Reliance Jio coud set off broadband turf war with Airtel

    MUMBAI: The entry of Reliance Jio in the telecom market disrupted mobile data pricing. Now, as the Mukesh Ambani-owned venture is set to enter the broadband service too, its competitor Bharti Airtel is also expected to bombard consumers with great offers. After telecom, the two companies are now prepping themselves for a war in the home broadband segment.

    According to media reports, the broadband service from Jio will offer data speeds of 100 Mbps, with massive data limit, starting at Rs 1,000-1,500 a month. Moreover, it’s expected to offer a combination of fast connectivity and unlimited video and voice calls through the Voice Over Internet Protocol (Vo-IP).

    To lure more customers, Jio may offer the initial service free of cost. Jio has already rolled out pilot services in few cities. Economic Times reported a person familiar with the development as stating that Jio might reveal the timing of commercial launch on 5 July, the day of Reliance Industry Ltd’s general meeting.

    Airtel is also gearing up efforts to revamp its existing wired broadband connection. The telco has set aside Rs 24,000 crore for the financial year 2019. From current 89 cities it wants to expand its service to 100 key cities targeting big data consumption zones.

    “We are closely watching the wired home broadband space and will combine innovation with aggressive investments and do whatever it takes to stay competitive on services and tariffs and grow our home customer base,” a senior Bharti Airtel executive said as quoted by ET.

    The entry of Jio may again disrupt home broadband pricing forcing its rivals, especially Airtel, to decrease rates, repeating the 2016 Jio 4G phenomenon.

    Also Read:

    Jio led broadband while Hathway led wired broadband subs growth in 2018

    Reliance Jio ready to disrupt wired broadband: Matthew Oomen

  • Reliance Jio crosses 200 million subscriber mark

    Reliance Jio crosses 200 million subscriber mark

    MUMBAI: Within two years of its launch, Reliance Jio has crossed the 200 million subscriber mark. The Mukesh Ambani-owned telco reached this milestone in the shortest time ever, according to a report from financial Express. 

    Earlier Jio reported a subscriber base of 187 million at the end of March. Hence, in the last three months, the company added close to 9-10 million users. Given this speed, Jio is likely to overtake Idea Cellular’s 217-million user base and even Vodafone’s 222 million users. However, Vodafone and Idea are also concluding their merger making it India’s largest telco company.

    India’s current largest telco operator Bharti Airtel was the first in the country to cross 200 million subscribers back in 2014 which currently stands with 309 million wireless users.

    Jio has seen major success since its launch thanks to free voice calls in domestic territory and competitive data price. While Bharti Airtel, Idea Cellular and Vodafone India have been adding around 1.5 to two million users every month, Jio’s addition has been in the range of seven to eight million.

    After its launch in September 2016, Jio added 50 million subscribers in November of that year itself.

    Also Read:

    Reliance Jio to soon launch 5G services: all you need to know 

    Reliance Jio ready to disrupt wired broadband: Matthew Oomen